Italy Backs Budget That Calls
For Cuts in Taxes, Spending

ROME -- Under pressure from slowing growth and European Union deficit requirements, Italy approved its 2003 budget, calling for &euro;20 billion ($19.75 billion) of spending cuts and revenue-raising measures, as well as tax cuts promised by Prime Minister Silvio Berlusconi during last year's election.

The draft package aims at cutting Italy's deficit to 1.5% of output next year from 2.1% in 2002. Growth targets have been lowered to just 0.6% for this year, down from a previous target of 1.3%, and next year, growth is expected...